In a preliminary meeting for a project, team members decide to execute the project with agile methodology. A finance team member wants to know how project cost will be determined at this early…

Question

Exhibit

Options

• AUse a lightweight cost estimation due to the nature of agile projects
• BUse a detailed cost estimation for agile projects
• CRetrieve a budget from a previous project and create a baseline for this project based on it
• DUse a detailed work breakdown structure (WBS) to get cost estimation

• A
  76% (19)
• B
  4% (1)
• C
  12% (3)
• D
  8% (2)

Explanation

Agile methodology deliberately avoids detailed, comprehensive upfront planning due to the iterative and adaptive nature of the approach. At early stages, the team uses lightweight cost estimation techniques such as story points, t-shirt sizing, or velocity-based planning, with cost estimates refined progressively in each iteration. Option B contradicts agile principles, which reject heavy up-front estimates. Option C (reusing a previous project's budget as a baseline) is analogous estimating and not a standard agile practice. Option D (detailed WBS-driven estimation) is a traditional/predictive approach, not suited for agile's rolling-wave nature.

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